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I'm sorta up in arms about all this new Tau crap. Dudes it wasn't this bad when the last three Codices came out! So I've made Tau my target priority!

HQ
Rune Priest - Divination, Living Lightning, Runic Armour, Master of Runes (170)
Rune Priest - Murderous Hurricane, Jaws of the World Wolf, Runic Armor, Master of Runes (170)

Troops

10 Grey Hunters, MotW, Meltas (2), Wolf Standard, Drop Pod (215)

10 Grey Hunters, MotW, Meltas (2), Wolf Standard, Drop Pod (215)

8 Grey Hunters, MotW, Plasma Gun, Wolf Standard, Drop (190)

10 Grey Hunters, MotW, Plasma Gun(2), Wolf Standard, Power Fist, Drop Pod(245)

6 Grey Hunters, MotW, Meltas, Melta, Wolf Standard, Lazorback (195)

Heavy Support

Long Fangs 5 Missile Launchers (140)
Long Fangs 3 Las Cannons, Missile Launchers (185)
Long Fangs 3 Plasma Cannons, razor back (185)

The short and sweet of it. My Rune Priest with Jaws and Murderous Hurricane drops with the 8 Grey Hunters and they beat crisis suit face. The others just do what grey hunters do. The last lazorback squad is an objective camper that may just get a kill with the twin linked las cannon. Either way the drop pods are the beauty of all this because the Tau can't run.

Thoughts on how to make this more deadly? I'm not getting rid of the power fist on that one squad because I dream of punching Tau in the face at night.

Tau have no psychic powers, so terminator armor is better than runic armor in that you always have a 5++. Make sure you give your 10 man grey hunter squad in the pod a second plasma gun, as it is free.

Not sure if you can take divination and living lighting, I think swapping powers is all or nothing. On your second priest, you can only shoot one power a turn regardless of mastery level, so drop master of runes(more long fangs or something). Consider choosers of the slain to force them to castle making the drop pod assault even more effective.

The fist is very nice to instagib suits and the like.

That is correct. No divination and living lightning. Pick one.

To be 100% honest I don't fully understand chooser of the slain...

The chooser of the slain stops scout moves and infiltrating withing 24" (i think) thus holding some of the Tau units that normal scout/infiltrate in their deplyment zone. This might work, but a smart opponenet will just reserve/outflank them as a bck force to counter your droppods. BTW, beware riptides with interceptor and large blast S8 AP2 shots. Your priest and his whole squad will die before he even gets to cast his JAWW.

Yeah, interceptor could be the undoing of this list.

Riptides w/ Ion accelerator and interceptor will really hurt your podding squads. If you wanna wreck Tau w/ SW just go with a mass of TWC, since railguns lost str10 it'll be hard for Tau to drop them fast enough (as they're assaulting on t2).